Many news sources are reporting that a massive deal is underway to clear out many issues remaining before the Congress. The most imminent is the debt ceiling. CNN is reporting that the deal will include provisions to extend the Social Security Disability Trust Fund. The New York Times reports that this will involve unspecified cuts in Social Security disability.
Update: The Associated Press says the deal will involve a temporary reallocation of FICA revenues but "changes to the disability program to fight fraud and to encourage disabled workers to return to work" that would presumably be permanent. We could be revisiting this in the not too distant future.
Update: CBS News says the deal would include the end of the Single Decision Maker (SDM)program for Social Security disability claims. This isa small change in the big picture but it makes disability determination even slower.
Update: The New York Times is reporting:
Update: From The Hill:
To put it mildly, we're getting conflicting reports. Reporters are getting incomplete information and don't understand much of what they're hearing.
Update: Multiple media reports say the budget deal would save $168 billion in Social Security disability. Budget savings are generally reported for a ten year period. For purposes of comparison, Social Security is paying out about $150 billion a year. You wouldn't get that kind of savings without massive across the board cuts.
Update: Time magazine reporting budget deal will involve a change in the way in which Social Security disability benefits are computed.
Update: The Associated Press says the deal will involve a temporary reallocation of FICA revenues but "changes to the disability program to fight fraud and to encourage disabled workers to return to work" that would presumably be permanent. We could be revisiting this in the not too distant future.
Update: CBS News says the deal would include the end of the Single Decision Maker (SDM)program for Social Security disability claims. This isa small change in the big picture but it makes disability determination even slower.
Update: The New York Times is reporting:
... [T]he Social Security Disability Insurance program would be amended so that a medical exam now required in 30 states before applicants could qualify for benefits would be required in all 50 states. That change was projected to save the government $5 billion. ...I haven't the slightest idea what they're talking about.
Update: From The Hill:
The deal would ... create a "flat benefit" for disability recipients, which would be tied to the federal poverty line rather than an individual's own savings. The idea of the flat benefit has been championed by budget experts at the Heritage Foundation.
"This would be the first significant reform to Social Security since 1983, and would result in $168 billion long-term savings," according to a source familiar with the talks.Update: George Zornick at The Nation has tweeted that he is hearing that there will not be large or across the board in Social Security disability but that the appeal process may get longer and there may be some demonstration of a benefit offset for disability recipients with earnings.
To put it mildly, we're getting conflicting reports. Reporters are getting incomplete information and don't understand much of what they're hearing.
Update: Multiple media reports say the budget deal would save $168 billion in Social Security disability. Budget savings are generally reported for a ten year period. For purposes of comparison, Social Security is paying out about $150 billion a year. You wouldn't get that kind of savings without massive across the board cuts.
Update: Time magazine reporting budget deal will involve a change in the way in which Social Security disability benefits are computed.
